Gold prices (XAU/USD) have surged to new all-time highs, with the precious metal oscillating in a narrow range near its peak during the Asian session on Friday. The bullish consolidation comes amidst ongoing concerns over U.S. President Donald Trump’s aggressive trade policies and their potential global economic ramifications, which continue to drive demand for gold as a safe-haven asset.
Another contributing factor to the rally in gold prices is rising expectations for further monetary policy easing by the U.S. Federal Reserve (Fed), which benefits the non-yielding bullion. The anticipation of looser monetary conditions is fueling further demand for gold, reinforcing its appeal to investors.
However, some strength in the U.S. Dollar (USD) and slight improvements in global risk sentiment have prevented gold from breaking through the psychological $3,000 mark. This, combined with overbought conditions on the weekly chart, has deterred traders from making new bullish bets, keeping gold’s price below this critical threshold.
Despite this, gold remains on track to register strong gains for the second consecutive week, supported by a fundamentally favorable backdrop for further upward movement. Analysts suggest that gold prices may need to consolidate before attempting a sustained move above the $3,000 level.
From a technical perspective, gold’s recent breakout through the $2,928-$2,930 resistance range and the subsequent move beyond its previous record high near $2,956 has been seen as a key trigger for the bullish trend. The Relative Strength Index (RSI) on the daily chart is approaching overbought territory, which may encourage a brief consolidation or pullback before gold can make its next upward move. Despite this, the broader technical setup still points to further upside potential, with gold likely to continue its well-established uptrend.
If a pullback occurs, the $2,956 area is seen as a key support level, which could attract fresh buying. Should the price drop further, the $2,930-$2,928 range, previously acting as resistance, would now provide strong support. A convincing break below this support zone could trigger technical selling, leading to deeper losses. In that case, gold prices might accelerate their decline towards the $2,900 mark, with further downside risks extending toward the $2,880 region, corresponding to the weekly low from earlier in the week.
In conclusion, while gold remains within striking distance of $3,000, technical indicators suggest a brief consolidation or pullback could be necessary before the next move higher. The fundamental factors—trade tensions and Fed policy expectations—remain supportive of the ongoing bullish trend in gold prices.
Related topics：
- What is the Value of 18K Gold?
- Why Does Gold Price Increase During War?
- What is the Best Price Being Paid for Gold Sovereigns?
